People may still want to move in with family. There is value in that but some downsides as well. The extended family of multiple generations is desired by many people, and it seems to work well when families already have a close relationship. The parents or other senior members of the family (aunts, uncles, or older siblings) are embraced as vital, essential members of the family. When children are present, the older members can assist with childrearing and supervision while offering a solid connection from another generation and time. In many ways, this is a healthy and effective relationship.
Today, there are at least four other options or opportunities for seniors to consider besides a retirement facility - regardless of their health or physical abilities. The biggest change that has occurred in recent years is for people to continue living in their present homes - and to be encouraged to do so.
While people have likely been doing this on an individual basis over the years, there now is a concerted effort to encourage people to remain independent and to live where they are as long as they feel that they can. There are even caregivers and agencies that can assist them to continue their independence.
The second alternative is similar. Someone who already has a home can take in one or a few other people as renters to provide companionship and share the expenses. Rather than trying to keep up a residence by themselves, the homeowner can have others to rely on, and everyone can enjoy the other's company.